This week’s Stock of the Week is growing by helping other companies streamline their operations.

Beyond Payroll

Paycom Software (PAYC) is an online-only payroll-processing company that offers midsize businesses much more than traditional payroll-related services. It provides a suite of software-as-a-service for many aspects of “human capital” management including expense management, human resources, time and labor management, tax handling, health insurance and COBRA administration, and more.

Paycom targets companies with 2,000 to 5,000 employees and is still run by founder Chad Richison, who started the company in 1998. The breadth and efficiency of Paycom’s services allows its customers to typically eliminate three or four other vendors, simplifying operations for Paycom users substantially while also tying the companies tightly to Paycom.

Even after two decades, Paycom represents an unusual model for back-office tasks in midsize companies and therefore could continue growing strongly. The company’s cash flow is strong, and revenue was $433 million in 2017 and will likely be reported as $560 million for 2018 and $700 million for 2019.

Fiscal year: December. Earnings per share: 2019 est./$3.21…2018 est./$2.61…2017/$1.30.

Robert T. Lutts is president of Cabot Wealth Management, Salem, Massachusetts, which manages $680 million, and author of Winding the Stem: Entrepreneurs, Innovation and Wealth Creation.